Equity & LVR Calculator
Calculate your home equity, LVR (loan-to-value ratio), and usable equity for your next investment property.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
How is LVR calculated?
What is usable equity?
How much can I borrow with my equity?
Can I use equity from my home for any purpose?
What is Equity & LVR?
Home equity is the difference between your property's current value and your outstanding loan balance. LVR (Loan-to-Value Ratio) is the loan as a percentage of the property value — a key metric used by lenders to assess risk.
How this calculator works
Enter your current property value and outstanding loan balance to see your LVR, total equity, and usable equity. Usable equity = (Property Value × Lender Max LVR%) − Current Loan. This is the amount you can typically borrow against without triggering Lenders Mortgage Insurance (LMI). Indicative deposit power assumes a 20% deposit + 80% loan, so $100K usable equity could secure a deposit on a ~$500K property.
How LVR Affects Your Borrowing
Lenders use LVR to gauge how much of the property they're 'at risk' for. Below 80% LVR: best rates, no LMI required. 80-90% LVR: LMI applies (premium added to loan), rates often slightly higher. 90-95% LVR: high LMI premiums, stricter serviceability. Above 95%: most lenders won't approve unless you're using the First Home Guarantee Scheme or have a guarantor.
Using Equity to Buy More Property
The standard strategy: rather than saving a fresh cash deposit, use equity from your existing property as the deposit on the next one. Refinance up to 80% LVR to release the equity (no LMI), then use those funds + 80% loan from a new lender on the new property. Be aware of cross-collateralisation traps — keep loans separate where possible.
Equity Release vs Top-Up
Equity release means refinancing your loan to a higher amount (using the equity as security). This is different from a top-up loan or line of credit. Tax-wise, the purpose of the borrowed funds matters: borrowing for an investment property is tax-deductible interest; borrowing for personal use (car, holiday) is not. Keep the borrowing structure clean for your accountant.
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
Official Sources
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.